Credit score requirements for mortgages, auto loans, credit cards and other loans are all going up. For those who have excellent FICO scores, there is not a lot to be concerned about. For those with less than excellent FICO scores, the financial impact is even more astonishing.
What credit score improvement program gets superior results. Let’s go through them.
There are three major credit score improvement programs. They are
- Creditxpert (aka: Credit Assured)
- Experian’s Boost
- Family Financial’s My Credit Plan
There are six points to consider.
- Do you have access to the program as a consumer?
- Does it lower your scores from a hard inquiry?
- Does it improve all 3 FICO Scores: Equifax FICO, Experian FICO, and TransUnion FICO?
- What are the results on average and the success rates?
- Does it provides the lender’s FICO scores?
- What is the cost to you?
FICO Score Improvement Programs
|| My Credit Plan
|1. Consumer Access
|2. Hard Inquiry (to Access)
|3. Improve All 3 FICO Scores
|4. Average Results (Improvement)
|5. Success Rate
|6. Lender's (Classic) FICo Scores
|2 Month Cost
Consumer Access– Consumers have access from their home computer to Experian Boost and Family Financial’s My Credit Plan. Consumers cannot access Creditexpert unless they go through a lender.
Hard Inquiries– Creditxpert is only through a lender and so every time a consumer gets access to it, a lender must pull your credit report, resulting in a hard inquiry that lowers your FICO scores. Experian Boost and My Credit Plan utilize soft inquiries that do not lower your FICO scores.
Improve 3 FICO Scores– Creditxpert and My Credit Plan are designed to improve the Equifax FICO, the Experian FICO, and the TransUnion FICO Scores. Experian Boost is only designed to improve the Experian FICO Score.
Score Results– Creditxpert has a score improvement of 27 points on average by focusing on paying down debt. Boost is only focused on reporting new accounts from utility payments to your credit report. For those with Lower FICO scores, this could help. For those with average to higher FICO scores, the impact is not so much. My Credit Plan looks at not only paying down debt, but also closing accounts, opening accounts and using accounts to increase FICO scores. Since there is more steps to take with My Credit Plan over Creditxpert, the results are better.
Success Rate– Creditxpert has not provided any success rates. Experian Boost has a success rate of 60%. This means 60% of those enrolled into their program will see FICO scores increase. My Credit Plan has over a 90% success rate.
Lender’s (Classic) FICO Scores– Creditxpert is only offered through a lender and so you will have go to the lender’s to access this progam and your Classic FICO scores. All mortgage lenders, and most auto and credit card lenders use the FICO Classic Scores for their loan approvals. Experian Boost only provides FICO 9 – a score model not used by many lenders. My Credit Plan provides the 3 FICO Classic Scores that most lenders use.
2 Month Cost– Creditexpert requires to pull your credit report at the beginning and again after changes have been made. The average cost to a lender if $46 a month. Experian Boost has not cost. My Credit Plan has a program out for mortgage qualifications of two payments of $59.95. This is one 3-FICO score upfront, and a second in 30 days after changes have been made and a second 3-score pull is